Amendments to the Federal Reserve Act have been proposed that would ban the US central bank from issuing central bank digital currencies (CBDCs) until 2030.
The changes came at the end of the 300-page “ROAD to 21st Century Housing Act” (HR 6644), released Monday by the Senate Banking, Housing and Urban Affairs Committee.
Section 10 of the proposed legislation states that the board of governors of the Federal Reserve System or the Federal Reserve Bank “may not create or create a central bank digital currency or any digital asset that resembles a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
The bill also includes an exception for stablecoins, which states that the Fed “does not prohibit any dollar currency that is open, permissionless, and private,” and fully protects the privacy of physical currency.
The proposed ban includes a sunset clause that would expire on December 31, 2030, after which new legislation would be needed to keep the ban in place.
The White House quickly issued a statement supporting the law and preventing CBDC, which it said could “pose serious threats to privacy and personal freedom.”
The Senate advanced it on a procedural vote (84-6) on Monday to limit debate and move forward, clearing the way for a full floor review.
Not the first attempt to block CBDC
This version of the housing bill revives language from previous efforts to block the US CBDC and is not original legislation.
The “No CBDC Act” (S 464) is a standalone bill introduced by Senator Mike Lee in February 2025 that would prohibit the Fed or Treasury from issuing CBDCs; however, he remained in the congress.
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Further legislation to ban the issuance of CBDC to the Fed was introduced in June 2025 by Congressman Tom Emmer under the “Anti-CBDC Government Control Act” (HR 1919).
The bill passed the House of Representatives on July 17, but has yet to pass the full Senate.
China, Russia and India are testing CBDC
According to the Atlantic Council’s CBDC tracker, only three countries have officially deployed a CBDC: Nigeria, Jamaica and the Bahamas.
Another 49 countries are actively testing CBDCs, including China, Russia, India and Brazil, while 20 countries have CBDCs in development and 36 countries are still investigating them.
In February, the president of the German central bank, Joachim Nagel, highlighted the benefits of CBDC for the European Union, which is in the pilot phase.
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